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Franchises

Advertising Alphabet Soup-CPR Or CPA

Resuscitating your ad revenue with referrals
1 min read
Opinions expressed by Entrepreneur contributors are their own.

Here's another online advertising term defined so you can talk the talk with potential advertisers to generate ad revenue through your Web site.

CPR is the cost per referral and a CPA is a cost per action. Both measurements mean that your advertiser will pay you if your Web site visitors not only click on your advertiser's ad banners but also takes some other kind of action.

Usually a referral means your visitors fill out a form on the advertiser's Web site to request further information and to provide the advertiser with contact information and key demographic data. An average CPR could cost upwards of $10 or more, depending on how desirable your audience is to the advertiser.

An action usually means that your Web site visitors have gone on to purchase products from your advertiser or conducted a transaction of some kind after clicking on the banner. Payment for an action could be $20 or more or a small percentage of the sale.

Aliza Sherman is an entrepreneur and author of Cybergrrl: A Woman's Guide to the World Wide Web (Ballantine Books). She is currently working on her next book and new company.

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